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Approval Grant for the Dubuque Dream Center's Acquisition of 2540 Central Avenue (Fulton School)City of Dubuque City Council Meeting Action Items # 01. Copyrighted September 19, 2022 ITEM TITLE: Approval Grant for the Dubuque Dream Center's Acquisition of 2540 Central Avenue (Fulton School) SUMMARY: City Manager recommending City Council approval of a resolution approving a Grant Agreement by and between the City of Dubuque and Dubuque Dream Center for the purchase and rehabilitation of the former Fulton School building located at 2540 Central Avenue, and utilizing the building to provide its regular programming. RESOLUTION Approving a Grant Agreement between the City of Dubuque, Iowa and Dubuque Dream Center for the acquisition and redevelopment of 2540 Central Avenue SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type Grant Agreement with Dubuque Dream Center for Acquisition and Rehabilitation of 2540 Central Avenue- City Manager Memo MVM Memo Staff Memo Resolution of Approval Grant Agreement Staff Memo Resolutions Supporting Documentation THE C Dubuque DUjIBQTE WAWca 914 Masterpiece on the Mississippi YP pp aoo�•o 13 zai7*20*�oi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Approval Grant for the Dubuque Dream Center's Acquisition of 2540 Central Avenue (Fulton School) DATE: September 14, 2022 Economic Development Director Jill Connors is recommending City Council approval of a resolution approving a Grant Agreement by and between the City of Dubuque and Dubuque Dream Center for the purchase and rehabilitation of the former Fulton School building located at 2540 Central Avenue, and utilizing the building to provide its regular programming. I concur with the recommendation and respectfully request Mayor and City Council approval. Micl4ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jill Connors, Economic Development Director Robert Kimball, Dubuque Dream Center, Executive Director Racquel McClellan, Dubuque Dream Center, Executive Assistant Donor Relations Coordinator Alex Dixon, Dubuque Racing Association, President & Chief Executive Officer Dubuque THE CITY OF All -America My nni K xvni , nz: a:u�ir, DUB E 2007-2012.2013 Masterpiece on the Mississippi 2017*2019 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director Economic Development Department 1300 Main Street Dubuque, Iowa 52001-4763 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org SUBJECT: Approval Grant for the Dubuque Dream Center's Acquisition of 2540 Central Avenue (Fulton School) DATE: September 13, 2022 INTRODUCTION This memorandum requests City Council approval of the attached resolution approving a Grant Agreement by and between the City of Dubuque and Dubuque Dream Center for the purchase and rehabilitation of the former Fulton School building located at 2540 Central Avenue. BACKGROUND The Dream Center is a long-time partner of the City of Dubuque, in fact, the City Council has on multiple occasions identified the Dream Center and/or the work they do as City Council priorities. The City of Dubuque provides $60,000 a year towards Dream Center operational expenses and in 2020 provided the Dream Center over $300,000 to remodel their existing facility at 1600 White Street. The Dream Center now qualifies for hundreds of thousands of dollars a year in childcare subsidies from the State of Iowa. This is a direct result of the City of Dubuque assistance on the remodeling project. The services that are provided to traditionally marginalized disenfranchised low-income families and youth by the Dream Center are geographic based. This area has two of the largest low-income census tracts in the City of Dubuque. Their 1600 White Street facility is located within a convenient walking distance for these families. DISCUSSION The Dream Center currently serves almost 200 families with over 100 families on a waiting list. The Dream Center also knows that many families do not apply because the waiting list is so long. The Dream Center has been presented with an opportunity to dramatically expand the number of families they can serve with their program, namely the purchase of the former Fulton School building at 2540 Central Avenue from the Dubuque Community School District. Fulton School is in a similar convenient walkable distance for families living in our low-income census tracts. To this end, on July 18, 2022, City staff recommended, and City Council approved allocating $300,000 to supplement the Dream Center's the amount of their purchase offer to the Dubuque Community School District. The DRA has also committed funds to this effort. The Dubuque Community School District has accepted the Dream Center's bid. Accordingly, staff have prepared a grant agreement to provide the $300,000 in funding to the Dream Center. This agreement requires that Dream Center purchase and maintain ownership of the building and use it for the purpose of providing their programming. Funds will be provided at the closing of the purchase agreement between the Dream Center and the Dubuque Community School District. RECOMMENDATION/ ACTION STEP I recommend City Council adoption of the attached resolution approving the proposed Grant Agreement providing funding to Dubuque Dream Center for the purposes of acquiring and rehabilitating the former Fulton School building located at 2540 Central Avenue, and utilizing the building to provide its regular programming. 2 Prepared by: Jill Connors, Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4393 Return to: Jill Connors, Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4393 RESOLUTION NO. 309-22 APPROVING A GRANT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND DUBUQUE DREAM CENTER FOR THE ACQUISITION AND REDEVELOPMENT OF 2540 CENTRAL AVENUE Whereas, Dubuque Dream Center intends to acquire and redevelop the property at 2540 Central Avenue in the City of Dubuque, Iowa (the Project); and Whereas, the Project is eligible for a Grant funded through general funds and a Greater Downtown Loan Pool special revenue fund (the Grant); and Whereas, it is the determination of the City Council that approval of the Grant Agreement for acquisition and redevelopment of the Property by Dubuque Dream Center, according to the terms and conditions set out in the Grant Agreement, is in the public interest of the City of Dubuque. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Grant Agreement by and between the City of Dubuque and Dubuque Dream Center, a copy of which is attached hereto, is hereby approved. Section 2. That the Mayor is hereby authorized and directed to execute the Grant Agreement on behalf of the City of Dubuque and the City Clerk is authorized and directed to attest to his signature. Section 3. That the City Manager is authorized to take such actions as are necessary to comply with the terms of the Grant Agreement as herein approved. Passed, approved and adopted this 19th day of September, 2022. Brad M. C nagh, ayor Attest: Adrienne N. Breitfelder, City Clerk GRANT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND DUBUQUE DREAM CENTER THIS GRANT AGREEMENT (the "Agreement"), dated for reference purposes the day of 2022, by and between the CITY OF DUBUQUE, IOWA, a municipality established pursuant to the Code of Iowa (the "City") and Dubuque Dream Center ("Grant Recipient"). WHEREAS, Grant Recipient's programming meets the City Council's goal of "Partnership for a Better Dubuque: Building Our Community that is Viable, Livable, and Equitable"; and WHEREAS, Grant Recipient intends to complete the purchase, renovation and rehabilitation of a former elementary school building located on property legally described as follows: LOTS 231, 232, 233, 234, & 235 LOTS 1 & 2 OF 230, N 28'-LOT 229, & S 1/2-LOT 236, N 1/2 OF 236, S. 32' OF LOT 1 OF 229, LOT 2 SUB S.32.52' OF 229, LOT 2-2-228, LOT 1-2-228, LOT 1-1-228, & LOT 2-1-228 DAVIS FARM ADD locally known as 2540 Central Avenue, Dubuque, Iowa (the "Development Property"); and WHEREAS, the City Council has consistently challenged staff to work with those who would redevelop abandoned school buildings to prevent them from becoming a blighting influence on the neighborhood in which they are situated and turn them into neighborhood assets; and WHEREAS, Grant Recipient's purchase, renovation, and rehabilitation of the Development Property is referred to herein as the "Project"; and WHEREAS, the State of Iowa has created a new grant program for Non-profit Innovation; and WHEREAS, Grant Recipient has applied for a Non-profit Innovation Grant from the State of Iowa; and WHEREAS, Grant Recipient was required to provide a match for the state grant application; and WHEREAS, on July 18, 2022, City staff recommended, and City Council approved a Downtown Rehabilitation Grant for the Project from City under the Program in an amount of Three Hundred Thousand Dollars ($300,000) to support Grant Recipient's 09142022cm b purchase of the Development Property, and, should receive the grant as match for Grant Recipient's Non-profit Innovation grant application to the State of Iowa, the terms of which are set forth in this Agreement; and WHEREAS, City believes that the purchase and development of the Development Property pursuant to this Agreement and the fulfillment generally of this Agreement, are in the vital and best interests of City and in accord with the public purposes and provisions of the applicable State and local laws and requirements under which the foregoing project has been undertaken and is being assisted. NOW THEREFORE, in consideration of the promises and obligations of the parties hereto, each of them does hereby covenant and agree with the others as follows: SECTION 1. GRANT REQUIREMENTS. 1.1 Required Use of Funds. Grant Recipient shall fulfill all of the following requirements: (1) Grant Recipient shall purchase the Development Property; (2) Grant Recipient shall maintain ownership of the property for a minimum of ten (10) years; (3) Grant Recipient shall maintain use of the Development Property as a Dream Center childcare and educational programming facility for children from birth to age eighteen (18) for a minimum of ten (10) years. 1.2 Closing. The closing shall take place on the Closing Date which shall be the day of , 2022, or such other date as the parties shall agree in writing but in no event shall the Closing Date be later than the day of , 2022. Consummation of the closing shall be deemed an agreement of the parties to this Agreement that the conditions of closing shall have been satisfied or waived. 1.3 City's Obligations at Closing. At or prior to the Closing Date, City shall deliver to Developer such other documents as may be required by this Agreement, all in a form satisfactory to Grant Recipient. 1.4 Insurance. (1) Up to the Termination Date, Grant Recipient shall maintain, or cause to be maintained, at its cost and expense (and from time to time at the request of City shall furnish proof of insurance in the form of a certificate of insurance) all-risk property insurance against loss and/or damage to the Development Property under an insurance policy written in an amount not less than the full insurable replacement value of the Development Property. The term "replacement value" shall mean the actual replacement cost of the Development Property (excluding 2 foundation and excavation costs and costs of underground flues, pipes, drains and other uninsurable items) and equipment, and shall be reasonably determined from time to time at the request of City, but not more frequently than once every three (3) years. (2) Grant Recipient shall notify City immediately in the case of damage exceeding $50,000.00 in amount to, or destruction of, the Development Property or any portion thereof resulting from fire or other casualty. Net proceeds of any such insurance (Net Proceeds), shall be paid directly to Grant Recipient as its interests may appear, and Grant Recipient shall forthwith repair, reconstruct and restore the Development Property to substantially the same or an improved condition or value as they existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, Grant Recipient shall apply the Net Proceeds of any insurance relating to such damage received by Grant Recipient to the payment or reimbursement of the costs thereof, subject, however, to the terms of any mortgage encumbering title to the Property (as its interests may appear). Grant Recipient shall complete the repair, reconstruction, and restoration of the Development Property whether or not the Net Proceeds of insurance received by Grant Recipient for such Purposes are sufficient. SECTION 2. FURTHER COVENANTS OF GRANT RECIPIENT. 2.1 Property Ownership. For and in consideration of the Grant offered under this Agreement, Grant Recipient shall maintain ownership of the Development Property for a minimum of ten (10) years. 2.2 Operation of Development Property. For and in consideration of the Grant offered under this Agreement, during the operation of the Development Property, Grant Recipient shall maintain use of the Development Property as a Dream Center childcare and educational programming facility for children from birth to age eighteen (18). In the event the facility is no longer maintained as a Dream Center childcare and educational programming facility for children from birth to age eighteen (18) the $300,000 grant from the City shall be repaid within one -hundred eighty (180) days. 2.3 Real Property Taxes. Grant Recipient shall pay or cause to be paid, when due, all real property taxes and assessments payable with respect to all and any parts of the Development Property, as applicable. 2.4 Any Grant repayment obligation due to an Event of Default shall be decreased by $2,500 a month for each month during the term of this Agreement the Grant Recipient used the Development Property for the intended and authorized use and all obligations of the Dream Center fully satisfied after 120 months. 2.5 Grant Recipient shall maintain the building and grounds of the Development Property for the life of the property. I 2.6 Non -Discrimination. In carrying out the Project, Grant Recipient shall not discriminate against any employee, volunteer, or program participant because of age, color, familial status, gender identity, marital status, mental/physical disability, national origin, race, religion/creed, sex, or sexual orientation. SECTION 3. CITY PARTICIPATION. 3.1 Downtown Rehabilitation Grant. (1) City agrees to provide to Grant Recipient, on the terms and conditions set forth herein, a Downtown Rehabilitation Grant (the Grant) in an amount equal to Three Hundred Thousand Dollars ($300,000). 3.2 Payment of the Grant. The Grant shall be payable as follows: (1) Any and all portions of the Grant shall be funded solely and only from available Program funds; (2) The Grant funds shall be disbursed directly to Grant Recipient at the Closing of the Grant Recipient's purchase of the Development Property. SECTION 4. EVENTS OF DEFAULT; REMEDIES. 4.1 Events of Default Defined. Failure by Grant Recipient to substantially observe or perform any covenant, condition, obligation, or agreement on its part to be observed or performed under this Agreement shall be an "Event of Default." 4.2 Remedies on Default by Grant Recipient. Whenever any Event of Default occurs and is continuing, City, as specified below, may take any one or more of the following actions after the giving of written notice by City to Grant Recipient of the Event of Default, but only if the Event of Default has not been cured within thirty (30) days following such notice, or if the Event of Default cannot be cured within thirty (30) days and Grant Recipient does not provide assurances to City that the Event of Default will be cured as soon as reasonably possible thereafter: (1) City may demand repayment of the Grant; (2) City may suspend its performance under this Agreement, including suspension of the payment of any installment of the Grant to Grant Recipient, until it receives assurances from Grant Recipient deemed adequate by City, that Grant Recipient will cure its default and continue its performance under this Agreement; (3) City may terminate this Agreement; or (4) City may take any action, including legal, equitable, or administrative action, which may appear necessary or desirable to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. 4.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. 4.4 No Implied Waiver. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. SECTION 5. MISCELLANEOUS. 5.1 Conflict of Interest. Grant Recipient represents and warrants that, to its best knowledge and belief after due inquiry, no officer or employee of City, or its designees or agents, nor any consultant or member of the governing body of City, and no other public official of City who exercises or has exercised any functions or responsibilities with respect to the Project during his or her tenure, or who is in a position to participate in a decision -making process or gain insider information with regard to the Project, has had or shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work or services to be performed in connection with the Project, or in any activity, or benefit therefrom, which is part of the Project at any time during or after such person's tenure. 5.2 Grants, Notices, and Demands. Whenever this Agreement requires or permits any notice or written request by one party to another, it shall be deemed to have been properly given if and when delivered in person or three (3) business days after having been deposited in any U.S. Postal Service and sent by registered or certified mail, postage prepaid, addressed as follows: (1) If to Grant Recipient: Dubuque Dream Center Attn. Robert Kimble 1600 White Street Dubuque, IA 52001 Phone: (563) 845-7591 (2) If to City: City Manager 50 W . 13th Street Dubuque, Iowa 52001 Phone: (563) 589-4110 5 With copy to: City Attorney City Hall 50 W . 13th Street Dubuque, Iowa 52001 or at such other address with respect to any party as that party may, from time to time designate in writing and forward to the other as provided in this Section. 5.3 Titles of Sections. Any titles of the several parts and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. 5.4 Definitions. All capitalized terms used herein shall have the meaning defined herein, unless a different meaning clearly appears from the context. 5.5 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. 5.6 Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of Iowa. 5.7 Amendment. This Agreement may not be amended except by a subsequent writing signed by all parties hereto. 5.8 Successors and Assigns. This Agreement is intended to and shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. 5.9 Termination Date. This Agreement shall terminate and be of no further force or effect 10 years after the Closing Date. 5.10 No Third -Party Beneficiaries. No rights or privileges of either party hereto shall inure to the benefit of any landowner, tenant, contractor, subcontractor, material supplier, or any other person or entity, and no such landowner, tenant, contractor, subcontractor, material supplier, or any other person or entity shall be deemed to be a third -party beneficiary of any of the provisions contained in this Agreement. 5.11 Indemnification. Grant Recipient hereby agrees to defend, indemnify and hold harmless City against any claims made by Grant Recipient, or any third party relating to or arising out of this Agreement, including costs, expenses, or attorneys' fees. 5.12 No Assignment; Non -Transferability. Following the execution of this Agreement and until the Termination Date: (1) Grant Recipient represents and agrees that it will not transfer, convey or make any assignment of any of its rights or interests in the Development Property, 6 Minimum Improvements, or this Agreement to any other party unless: (i) the transferee partnership, corporation, or individual assumes in writing all of the obligations of Grant Recipient under this Agreement, and (ii) City consents thereto in writing in advance thereof; and (2) Grant Recipient represents and agrees that it will not assign its rights or interests in this Agreement, including the Grant, to any other party unless City consents thereto in writing in advance thereof. CITY OF DUBUQUE, IOWA �_r/_ I • t0 ATTEST: �j2 Adrienne N. Breitfelder, City Clerk DUBUQUE DREAM CENTER By: Robert Kimble, Executive Director 7